commercial enterprise
All investors, either investing in a Direct EB-5 investment or a EB-5 RC investment, must invest in new commercial enterprise. A commercial enterprise is any for-profit activity and/or entity established for the purpose ongoing lawful business. A commercial enterprise may take any legal form, including but not limited to:
· A sole proprietorship
· Limited Partnership
· General Partnership
· Limited Liability Company
· S- Corporation
· Corporation
· Holding company
· Joint venture
Where the commercial enterprise is a Holding Company and its subsidiaries, these subsidiaries must engage in a “for-profit” activity, to be eligible for any EB-5 investment. Non-profits and the purchase/operation of residential properties do not qualify for EB-5 investments.
In addition to being a commercial enterprise it must also be a “new” enterprise. A commercial enterprise, qualifies as a “new” enterprise if it meets one of the following criteria:
· The Commercial Enterprise must have been established after November 29, 1990; or
· The Commercial Enterprise established on or before November 29, 1990, that is:
1. Purchased and the existing business is restructured or reorganized in such a way that a new commercial enterprise results, or
2. Expanded through the investment so that a 40-percent increase in the net worth or number of employees occurs.
· A sole proprietorship
· Limited Partnership
· General Partnership
· Limited Liability Company
· S- Corporation
· Corporation
· Holding company
· Joint venture
Where the commercial enterprise is a Holding Company and its subsidiaries, these subsidiaries must engage in a “for-profit” activity, to be eligible for any EB-5 investment. Non-profits and the purchase/operation of residential properties do not qualify for EB-5 investments.
In addition to being a commercial enterprise it must also be a “new” enterprise. A commercial enterprise, qualifies as a “new” enterprise if it meets one of the following criteria:
· The Commercial Enterprise must have been established after November 29, 1990; or
· The Commercial Enterprise established on or before November 29, 1990, that is:
1. Purchased and the existing business is restructured or reorganized in such a way that a new commercial enterprise results, or
2. Expanded through the investment so that a 40-percent increase in the net worth or number of employees occurs.